Exporting pays off - Sun Metal Products Inc

Business America, Oct 21, 1991

"Overseas trade shows are a good tactic to start or to expand export sales," according to Richard D. McKown, vice president for sales and marketing at Sun Metal Products, Inc., of Warsaw, Ind., which makes wire spoke wheels and alloy and steel rims for bicycles. McKown focuses on the export of alloy rims, as well as on their domestic sales.

By participating in IFMA, the major bicycle trade show in Germany, in Cologne in 1988 and again in 1990, McKown has made sales of alloy rims to 11 different European markets.

Since then, Sun Metal's participation in the 1991 Taipei Cycle Show has led to an active Far East marketing program, including Japan, Hong Kong, and Taiwan. The 200-employee firm receives financial assistance from the Indiana Department of Commerce, which provides co-op funds for up to 50 percent of trade show costs for Indiana-based companies.

McKown described the services of the Indiana Department of Commerce and the U.S. Department of Commerce as "cost effective" and recommends that other firms check in with their state government's commerce departments or export offices, as well as with the closest district office of the U.S. Department of Commerce's International Trade Administration (ITA); see inside back cover for a listing of ITA district offices. McKown is a client of the ITA district office in Inianapolis, Ind. As another source of export support, he suggests international chambers of commerce, such as the German-American Chamber in New York, which has given him trade-show assistance.

Based on his own experience, McKown offers these additional tactics for U.S. firms desiring to expand exports:

* Treat overseas customers with the same care and concern as domestic customers--they will respond with "good and sometimes great results."

* Get a long-term commitment to exporting from management.

* Give your overseas customers "day-to-day nurturing"--provide them with good product and pricing information, details of your promotional program, and prompt and complete shipments. Also, "press the flesh and establish personal relationships."

* Select your foreign sales representative with great care, because they represent the credibility of your company.

* Use the airplane, fax machine, international bankers, and freight forwarders.

* Try international advertising, and include international publications in your press release circulation list.

* Emphasize new and innovative products in your international marketing program. For example, Sun Metal is finding great interest in its rims for mountain bikes.

McKown believes that Sun Metal turned a corner recently in selling "big numbers" of its alloy rims to foreign bicycle manufacturers. Nearly all of its previous sales were to overseas distributors.

Sun Metal's export tactics are working. Exports of its alloy rims exceed expectations, rising from almost zero to a current 28 percent of sales. Last year alone, they climbed 950 percent.

Selling American products and services in other countries has become an increasingly important national objective as a way to create jobs and otherwise boost the U.S. economy and improve our trade balance. Those U.S. companies that make special efforts to increase exports are not only helping themselves -- they are helping their country as well. The same holds true for various other organizations that provide export services. These companies and organizations deserve recognition. As the U.S. Government's magazine on international trade, Business America countinues its "Honor Roll of U.S. Exporters." The honor roll includes winners of the President's "E" Award for excellence in exporting and as many other winners of export achievement awards as we can collect. We ask our readers to inform us about state and local exporting awards that may have escaped our attention. Write or call us: Business America, Room 3414, U.S. Department of Commerce, Washington, D.C. 20230; tel. (202) 377-3251.

President's "E" Award

WASHINGTON, D.C.--Recent winners of the President's "E" Award for excellent in exporting include four companies in Arizona; two in South Carolina; and one each in Illinois and Ohio. Two of the awards were "E Stars," which are reserved for firms that have previously won the "E Award" and have continued to make outstanding export progress.

* Syntellect, Inc., of Phoenix, Ariz. Dr. S. Thomas Emerson, president. Since 1987, the 185-employee manufacturer of voice response systems has committed substantial technical resources to internationalize its products to meet unique national requirements. Syntellect products now can speak 18 languages. The company has an international network of 20 distributors who market its products in 37 countries. Recently, it opened an office in Amsterdam, Netherlands, to provide support for its marketing activities in Europe, and it appointed a sales and support manager for Central and South America and the Middle East to support its distribution channels there. Syntellect's sales for the past three years show a growth in international shipments from 1 percent to 21 percent of total revenues.